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Service Strategy - Financial Management

Insight and decisive decision-making, are the key capabilities brought to the venture through the application of Financial management. The financial side of the project provides the business and IT with quantification of the value of IT services and assets. As with most aspects of ITIL, IT and finance need to work together to identify, document and agree on the value of services being received. With finance on board, IT organisations can achieve faster speed of change, better decision making (from a financial perspective), operational control and value creation.

Understanding those underlying assets, the value of those, managing the budget and filling the gaps - finance is on top of everybody's minds. When we think about business impact criteria as a way to reduce operating costs and initial rate of return. Increasing revenue, you know there's no doubt that this is a key component of being able to meet those objectives. The basic concepts of service valuation, the demand model, planning, service investment analysis, accounting and compliance.

The ability to manage a budget and understand that we have to do some basic cost accounting and manage spending. We can look back up to the things that we defined when we met with our customers about the values and the spend - so that we know that in fact we are spending too much. The financial management process owner is responsible for this aspect of Service Strategy.

See also:

  • Service Valuation
  • Variable Cost Dynamics (VCD)

service strategy finance budget bic objectives management value asset



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